Sustainability Report 2021 64 Water Management Although Applied’s operations are not high- volume water consumers relative to our industry, we strive to optimize our water use. Our R&D labs account for our highest consumption of ultrapure water, followed by our manufacturing operations, routine use at our offices, and landscape irrigation around our properties. In manufacturing, only a few of our toolsets require significant water, with others relying on efficient closed-loop systems. In 2021, our total water withdrawal increased by 23.5% over 2020. The increase is a result of increased groundwater usage due to piping modifications and replacements in our Santa Clara facilities. However, we were able to decrease our use of irrigation water by 25%. Facilities groups are responsible for water use management at specific Applied sites, with oversight from the company’s EHS organization. Our Managing Director of EHS is responsible for ensuring that water-related risks and minimization opportunities are assessed as appropriate. Water reduction is covered under our EHS policy and ISO 14001 EHSMS, which call for our business operations to identify opportunities, make continual improvements on environmental preservation and natural resource conservation, and meet or exceed all relevant regulatory requirements. Our water conservation efforts include: > Designing water-efficient products, following best practices for tool design and specifications for water use outlined in SEMI industry requirements > Water recycling and reuse for non- potable applications, especially cooling and landscape irrigation > Rainwater collection for use in landscaping or non-production needs (at our Singapore Operations Center and Tainan Manufacturing Center 2) > Drought-tolerant landscaping and smart irrigation to reduce the number of watering days Sustainability Report 2021 64 INTRODUCTION PURPOSE PEOPLE PLANET Climate and Energy Environmental Health and Safety PROGRESS Water Performance (ML) 2019 TOTAL WATER WITHDRAWAL (ML) 2020 2021 0 500 1000 1500 2000 2500 3000 1,962 ML 2,035 ML 2,512 ML